EFX runs into sellers around 163.18 for the third day in a row
Equifax Inc. (EFX) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
EFX ended Wednesday at 162.62 gaining $1.87 (1.16%) on low volume, outperforming the S&P 500 (0.64%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EFX as at Aug 05, 2020):
Wednesday's trading range has been $1.41 (0.87%), that's far below the last trading month's daily average range of $3.95. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EFX. Prices continued to consolidate within a tight trading range between 160.22 and 164.63 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The stock ran into sellers again today around 163.18 for the third trading day in a row after having found sellers at 163.48 in the previous session and at 163.74 two days ago. The last time this happened on July 22nd, EFX actually gained 5.14% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 160.22 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Equifax. Out of 66 times, EFX closed higher 59.09% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 71.21% with an average market move of 2.31%.